A post to the ICTs for Development
Blog has an explanation from Professor Richard Heeks that interpretations of
a new ruling that say China has banned gold-farming are not
actually accurate (thanks
IncGamers). According to the professor, the new law impacts the reverse
situation, banning using virtual currency to buy real items:

This is a
government restriction on the use of the quasi-Paypal-like currencies (mainly QQ
coins) that are used extensively in China to pay for virtual game stuff. As
announced they can now only be used to pay for virtual stuff, and you canít buy
real things with them as game companies were allowing to happen, nor can you
gamble. This therefore is not about what gold farming clients do: use real money
to buy these virtual currencies; itís the mirror image. And itís not about the
major trade in gold farming such as World of Warcraft, which relates to other
types of virtual currency. And itís not about buying/selling in-game items. And
itís not about the power-levelling of avatars. Bottom line: itís not about gold
farming.